Stocks on Bursa Malaysia ended Monday’s half-day trading on a positive note on bargain-hunting, with interest seen in banking stocks. The local market gained along with its regional peers following positive leads from the US on last Friday. Despite the positive market, trading was light as most market players remained on the sidelines ahead of the Hari Raya Aidilfitri and Merdeka Day holidays. The FBM KLCI closed 2.46 points or 0.17% higher at 1,447.27 after opening 3.40 points higher at 1,448.21. Gainers led losers by 432 to 214 while 221 counters were unchanged. Trading volume was thin at 447.13 million shares worth RM893.58 million compared with 966.74 million shares worth RM2.27 billion on Friday.
The FBM KLCI opened 3.4 points higher at 1,448.21 and pulled back to the intra-day low of 1,446.12, but bargain-hunting activity on selected blue-chips helped to push the key index to touch the intra-day high of 1,456.18 before pulling back on last minute profit-taking to close the half day trading at 1,447.27. Chart-wise, the FBM KLCI formed a black inverted hammer candlestick in Harami position, which indicates a possible temporary bottom. However, as the inverted hammer candlestick is black in color, the signal is less strong. Hence, the FBM KLCI is likely to move range-bound today, and the immediate overhead resistance zone is at 1,450 to 1,460, where 1,460-point coincided with the 360-day moving average resistance, while the immediate downside support zone is envisaged at 1,446 to 1,442-points level.
MACD continued to slide lower, indicating the bearish momentum is still in strong action. RSI (14) hooked up marginally to 27.1, reflecting the weak rebound, and indicated that the relative strength of the key index is still very bearish. Stochastic continued to slide lower to 27.4, indicating the down cycle is in continuation. Readings from the indicators showed that the FBM KLCI is currently still bearish and weak, and this situation might prolong until there are signs of bottoming out or reversal.
The trend of the FBM KLCI remained down and bearish. Most of the regional major indices rebounded over the last four days, but showed signs of profit-taking pulled back yesterday. The FBM KLCI might do catch up rebound today, but could be short-lived. Overnight, the Dow fell -119.96 points or -1.03% to close at 11,493.57, ending a four-day rally. Today, the FBM KLCI is likely to trade within a range of 1,433 to 1,466.
This week's expected range: 1423 – 1474
Today’s expected range: 1433 – 1466
Resistance: 1454, 1460, 1466
Support: 1433, 1439, 1443
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